RESEARCH REPORT Perception of People towards and Various Investment Avenue RESEARCH REPORT SUBMITTED IN PARTIAL FULLFILMENT OF MASTER OF BUSINESS ADMINISTRATION PROGRAMME (Session- 2010-2012) IMS ENGINEERING COLLEGE GHAZIABAD MAHAMAYA TECHNICAL UNIVERSITY- NOIDA (U.P.) Submitted By: Research Guide: Vivek Singh Miss. Punjika Rathi Roll No. 1014370060 Asst. Prof. IMSEC Gaziabad MBA 4 th semester
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
RESEARCH REPORT
Perception of People towards and Various Investment Avenue
RESEARCH REPORT SUBMITTED IN PARTIAL FULLFILMENT OF
MASTER OF BUSINESS ADMINISTRATION PROGRAMME
(Session- 2010-2012)
IMS ENGINEERING COLLEGE GHAZIABAD
MAHAMAYA TECHNICAL UNIVERSITY- NOIDA (U.P.)
Submitted By: Research Guide:
Vivek Singh Miss. Punjika Rathi
Roll No. 1014370060 Asst. Prof. IMSEC Gaziabad
MBA 4th semester
ACKNOWLEDGEMENT
First of all I would like to express my gratitude to my faculty Miss. PUNJIKA
RATHI. who guided me with her knowledge and skill and helped me in successful
completion of the work.
I thank my Institute who has given me an opportunity to show my skills. I also
thank all my nearer and dearer ones without whose support this project would not
been possible.
I gratefully acknowledge the invaluable support and guidance that was provided to
me by various individuals that led to the successful completion of this project.
Their vision of the problem gave me enough direction to bring out a meaningful
result.
I extend my sincere gratitude towards my parents, who have always encouraged
me and gave suggestions. They always stand by me. Their support has always
motivated me.
I would heartily thank all the respondents of the survey without whose support &
valuable inputs this project would not have been completed
DECLARATION I, Vivek Singh hereby declare that the research report titled “PERCEPTION OF
PEOPLE TOWARDS AND VARIOUS INVESTMENT AVENUE ” Submitted
in Partial fulfillment for the degree of “MASTER OF BUSINESS
ADMINISTRATION” to IMS ENGINEERING COLLEGE, GHAZIABAD is
my own effort and has not been submitted earlier to any other University / Board /
Institute.
Vivek Singh
Roll No.1014370060 MBA 4th sem Place: Ghaziabad Date:
CERTIFICATE
This is to certify that Mr. VIVEK SINGH is a bonafide student of MBA 2nd year of this institute. He prepared research report titled titled “PERCEPTION OF PEOPLE TOWARDS AND VARIOUS INVESTMENT AVENUE” for partial fulfillment of Master of Business Administration (MBA) affiliated to Mahamaya Technical University, Noida (Formally Uttar Pradesh Technical University).
I wish him all the best for his Future endeavors.
Prof. Rushen S. Chahal
Head of Department (MBA)
TABLE OF CONTENT
Articles Page No.
Front Page 1
Acknowledgement 2
Declaration 3
Certificate 4
Executive Summary 6-7
Introduction To The Topic 8-11
Introduction To Industry 12-19
Introduction To Company
20-39
Objective Of Research 42-46
Research Methodology 47-49
Data Collection And Interpretation 50-58
Conclusion 59-60
Limitations 61-62
Bibliography 63-64
Questionnaire 65-67
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The present report is prepared for the partial fulfillment of M.B.A and as a part of
curriculum. This is an attempt to determine and do a Study of “PERCEPTION
OF PEOPLE TOWARDS AND VARIOUS INVESTMENT AVENUE”
To pursue the research area of “RELIGARE securities ” are chosen. Where the
survey conducted through QUISTIONNARE and INTERVIEW. The data
collection is as analyzed and some practical tools were applied to get inferences
from the survey. The results are printed in forms of graphs and diagrams.
The report has two sections, in its first section company profile is given, where as
in second section, research methodology is given which includes sample design,
analysis on sample and findings are given. Suggestions with respect to the survey
for future improvement are given to improve the survey because their competitors
have also taken up the survey.
At the end of the report limitations, Conclusion of the research. Last there is
Bibliography.
I N T R O D U C T I O N
I N T R O D U C T I O N
The working of stock exchanges in India started in 1875. BSE is the oldest stock
market in India. The history of Indian stock trading starts with 318 persons taking
membership in Native Share and Stock Brokers Association, which we now know
by the name Bombay Stock Exchange or BSE in short. In 1965, BSE got
permanent recognition from the Government of India. National Stock Exchange
comes second to BSE in terms of popularity. BSE and NSE represent themselves
as synonyms of Indian stock market. The history of Indian stock market is almost
the same as the history of BSE.
The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is
compiled based on the performance of the stocks of 30 financially sound
benchmark companies. In 1990 the BSE crossed the 1000 mark for the first time. It
crossed 2000, 3000 and 4000 figures in 1992. The reason for such huge surge in
the stock market was the liberal financial policies announced by the then financial
minister Dr. Man Mohan Singh.
The up-beat mood of the market was suddenly lost with Harshad Mehta scam. It
came to public knowledge that Mr. Mehta, also known as the big-bull of Indian
stock market diverted huge funds from banks through fraudulent means. He played
with 270 million shares of about 90 companies. Millions of small-scale investors
became victims to the fraud as the Sensex fell flat shedding 570 points.
To prevent such frauds, the Government formed The Securities and Exchange
Board of India, through an Act in 1992. SEBI is the statutory body that controls
and regulates the functioning of stock exchanges, brokers, sub-brokers, portfolio
managers investment advisors etc. SEBI oblige several rigid measures to protect
the interest of investors. Now with the inception of online trading and daily
settlements the chances for a fraud is nil, says top officials of SEBI.
Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark
was crossed in June and the 8000 mark on September 8 in 2005. Many foreign
institutional investors (FII) are investing in Indian stock markets on a very large
scale. The liberal economic policies pursued by successive Governments attracted
foreign institutional investors to a large scale. Experts now believe the sensex can
soar past 14000 mark before 2010.
The unpredictable behavior of the market gave it a tag – ‘a volatile market.’ The
factors that affected the market in the past were good monsoon, Bharatiya Janatha
Party’s rise to power etc. The result of a cricket match between India and Pakistan
also affected the movements in Indian stock market. The National Democratic
Alliance led by BJP, during 2004 public elections unsuccessfully tried to ride on
the market sentiments to power. NDA was voted out of power and the sensex
recorded the biggest fall in a day amidst fears that the Congress-Communist
coalition would stall economic reforms. Later prime minister Man Mohan Singh’s
assurance of ‘reforms with a human face’ cast off the fears and market reacted
sharply to touch the highest ever mark of 8500.
India, after United States hosts the largest number of listed companies. Global
investors now ardently seek India as their preferred location for investment. Once
viewed with skepticism, stock market now appeals to middle class Indians also.
Many Indians working in foreign countries now divert their savings to stocks. This
recent phenomenon is the result of opening up of online trading and diminished
interest rates from banks. The stockbrokers based in India are opening offices in
different countries mainly to cater the needs of Non Resident Indians. The time
factor also works for the NRIs. They can buy or sell stock online after returning
from their work places.
INTRODUCTION TO
INDUSTRY
INTRODUCTION TO INDUSTRY
The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock
Exchange’ as anybody of individuals, whether incorporated or not,
Constituted for the purpose of assisting, regulating or controlling the business
of buying, selling or dealing in securities. Stock exchange could be a regional
stock exchange whose area of operation/jurisdiction is specified at the time of its
recognition or national exchanges, which are permitted to have nationwide trading
since inception. NSE was incorporated as a national stock exchange.
Stock market is known as the cradle of capitalism. It is a place where companies
come to raise their share capital and investors go to invest their surplus funds.
Stock market essentially discharges the functions of "the invisible hand" that
channels investment into the most productive ventures so as to optimize the overall
productivity of the economy.
Stock Market is a place where financial instruments like shares, debentures,
commercial papers, bonds etc are bought and sold. Stock markets are popularly
known as stock exchanges. There are many popular stock markets in the world.
NASDQ, Tokyo Stock Exchange, London Stock Exchange are the most popular of
the lot. There are many participants in a stock market. Investors, Speculators,
Arbitrators, Traders are different type of participants of a Stock Market. Brokers
are intermediaries who bring together various participants in a Stock Market.
National Stock Exchange (NSE)
The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is
today the largest stock exchange in India and a preferred exchange for trading in
equity, debt and derivatives instruments by investors. NSE has set up a
sophisticated electronic trading, clearing and settlement platform and its
infrastructure serves as a role model for the securities industry. The standards set
by NSE in terms of market practices; products and technology have become
industry benchmarks and are being replicated by many other market participants. It
provides a screen-based automated trading system with a high degree of
transparency and equal access to investors irrespective of geographical location.
The high level of information dissemination through the on-line system has helped
in integrating retail investors across the nation.
The exchange has a network in more than 350 cities and its trading members are
connected to the central servers of the exchange in Mumbai through a sophisticated
telecommunication network comprising of over 2500 VSATs. NSE has around 850
trading members and provides trading in over 1000 equity shares and 2500 debt
securities. Besides this, NSE provides trading in various derivative products such
as index futures, index options, stock futures, stock options and interest rate
futures. At NSE, it has always been our endeavor to continuously upgrade the
skills and proficiency of the Indian investor. Since, financially literate investors are
the backbone of the securities market, knowledge and awareness about the
securities market is of the foremost concern to us, starting with the most basic of
information being made available as the first step. This booklet has therefore been
prepared for those of you who are keen to acquire some basic but key information
about the stock markets as an initial step towards becoming a more informed
investor. We hope this booklet will act as a means of satisfying some of your initial
queries on the stock markets.
NSE has several advantages over the traditional trading exchanges.
They are as follows:
• NSE brings an integrated stock market trading network across the nation.
• Investors can trade at the same price from anywhere in the country since
inter-market operations are streamlined coupled with the countrywide access
to the securities.
• Delays in communication, late payments and the malpractice’s prevailing in
the traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations,
with the support of total computerized network.
Indian Stock Market
Indian stock exchanges host the most number of listed companies after United
States. About 2500 companies are listed in the Bombay stock Exchange and the
National Stock Exchange. Apart from foreign institutional investors, Indian stock
market has some 30 million domestic investors.
The working of stock markets has started in India as early as 1875, when 318
persons coming together to Native Share and Stock Brokers Association, with Re.1
for membership fee.
Today the same place has Association has grown into BSE and compiles the
benchmark index for 21 other exchanges spread throughout the country. BSE-
Sensex is the benchmark index of Indian stock exchanges. The 30 stocks that BSE
has selected to determine the index are *ACC, Bajaj, Bharti, BHEL, Cipla, Dr